Vinh Phuc IPs Showcase Strong Investment Appeal

Vinh Phuc province's industrial parks (IPs) feature a favorable location, modern infrastructure, eco-friendly environments and strong support policies, making them highly attractive to both domestic and foreign investors.

Perspective of the 295.74-ha Nam Binh Xuyen Green Park

According to a report by the Vinh Phuc Industrial Zones Management Board, as of October 15, 2024, Vinh Phuc province is home to 17 IPs with a total area of 3,146 ha, including nine operational IPs that are accommodating 495 valid projects, comprised of 376 foreign direct investment (FDI) projects with US$6.8 billion of investment capital and 119 domestic direct investment (DDI) projects of over VND38,822.61 billion. FDI investment projects come from 20 countries and territories, largely involved in manufacturing electronic components (accounting for 50.4%) and assembling automobiles and motorbikes (12.8%). Tenants in IPs disbursed 60 - 65% of their registered capital and employed over 142,400 workers.

Construction of the 213 ha Thang Long Vinh Phuc Industrial Park began in September 2017 by Sumitomo Corporation of Japan. The park has since completed both phases and attracted 41 investment projects, leasing 147.1 ha of land. Of these, 29 projects are now operational, primarily from Japan, Taiwan, Hong Kong and Vietnam.

Since exploring investment opportunities in Vinh Phuc, Sumitomo Corporation and the provincial government have positioned the Thang Long Vinh Phuc Industrial Park as a model for attracting eco-friendly, high-tech projects. The investor allocated 20% of the land for green spaces, including trees, lawns, ornamental plants, water features and roads, creating a "green lung" that enhances air quality, reduces the industrial atmosphere and helps alleviate post-work stress for workers.

To meet investor demand, Sumitomo has developed five factories for rent, each approximately 2,000 square meters, designed for high-tech tenants with minimal environmental impact, including companies like Toto, Daiwa and Tsuchiya. Additionally, Sumitomo is accelerating the construction of three more factory areas for rent, set to be completed by the end of February 2025. Thang Long Vinh Phuc Industrial Park is estimated to have about 70 investment projects to fully lease its rentable area and create jobs for about 20,000 workers. Along with land and factory leasing, the firm invested in building 26 departments for commercial and service companies like Vietinbank, Vietcombank and BIDV to serve secondary investors, establish a circular connection and well meet tenants’ needs.

Mr. Kenta Kawanabe, General Director of Thang Long Vinh Phuc Industrial Park Corporation, said: “With the ambition to create an exemplary industrial park in Vinh Phuc province, a land rich in potential advantages, Sumitomo Corporation proposed the province allow it to develop industrial park projects in Binh Xuyen and Yen Lac districts, with an area of over 460 ha, to boost the province’s industrialization and modernization.”

As one of the attractive industrial parks in Vinh Phuc province, Ba Thien II Industrial Park currently hosts 73 investment projects with a total registered capital exceeding US$900 million, generating over 23,000 stable jobs. Major international investors from the United States, South Korea, Singapore and Sweden are thriving in the park, including companies such as Nippon Paint Vinh Phuc, TAL Vietnam, Weldex Vina, Assa Abloy and Polaris.

The appeal of Ba Thien II Industrial Park comes not only from its geographical location but also from its synchronous infrastructure and modern technology, a wastewater treatment system with a daily capacity of 10,000 cubic meters according to international standards, and a concrete traffic system of international standards that helps minimize the need for factories to redistribute production plans due to road surface upgrades and repairs. Besides, the entire water supply and drainage system is built underground along the road corridor to ensure safety and hygiene for vehicles and workers. The modern operating area has a lot of utilities, services and a green, clean, environmentally friendly space.

Ba Thien II Industrial Park 

PNX Group, a Korean multinational real estate and financial investment firm, in collaboration with CNCTech Group, is developing Nam Binh Xuyen Industrial Park into the most advanced production hub in northern Vietnam. The park's modern infrastructure includes an IMS automated warehouse system, AI-driven security and epidemic control solutions, a 10+ ha "green park" with a regulating lake system, and rooftop solar panels installed across the factories.

Nam Binh Xuyen Industrial Park was approved for investment by the Prime Minister in Decision 399/QD-TTg dated March 19, 2021. Then, the Provincial People's Committee ratified the detailed construction plan in Decision 36/QD-UBND dated January 7, 2022 for a total area of 295.74 ha, including 200.41 ha of industrial land for lease, accounting for nearly 70% in the total area in Huong Canh and Dao Duc towns and Phu Xuan and Tan Phong communes, Binh Xuyen district. The project is divided into two phases with a total investment of more than VND2,200 billion. Once completed and put into operation, Nam Binh Xuyen Industrial Park will become the most modern production base in the north and attract manufacturers of electronics, telecommunications, machinery, auto parts, medical equipment and optical equipment. With its advantages in geographical location, synchronous infrastructure, tax exemption in the first two years and a 50% tax reduction for the next four years, Nam Binh Xuyen is drawing the interest of many investors, especially those from South Korea.

According to the Vinh Phuc Provincial Planning for the 2021-2030 period, with a vision to 2050, Vinh Phuc province will have 29 IPs. However, to have model IPs to woo strategic investors and achieve sustainable development, at the Conference on "Sustainable Industrial Park Development in Vinh Phuc" hosted by the Vinh Phuc Industrial Zones Management Board in late September, Chairman of the Provincial People's Committee Tran Duy Dong requested relevant agencies and district-level authorities to strengthen State IP administration, speed up land compensation and site clearance, and remove obstacles in determining land prices and land sources for leveling projects. They should actively advise the province on long-term and stable support policies on IP development.

They will accelerate administrative reform, apply digital technology and digital transformation, facilitate investors to handle administrative procedures concerning land, investment, construction, construction licensing, construction acceptance and fire prevention. IP infrastructure investors and tenants in IPs strictly comply with Vietnamese law and focus resources on carrying out synchronous, modern, high-quality and environment-friendly infrastructure projects.

At the same time, they will continue to closely coordinate with local authorities and relevant agencies in land compensation and site clearance; pay attention to care, maintenance and operation of green tree systems, technical infrastructure systems, and ensure reasonable IP land rental prices and factory rental prices; aim to develop IPs in a sustainable and green growth direction in order to create great appeal for strategic investors in the coming time.

By Nguyet Tham, Vietnam Business Forum